What are Three Major Developments in Crypto Space in 2020?

The year 2020 is a very important year for cryptocurrency due to three main things. First, institutional investors are entering the crypto space. Second, several central banks are planning to roll their digital currencies. Third, global regulators are proposing comprehensive charts of regulatory measures for digital assets.

Institutional Influx

According to several reports by blockchain data firms, big players have started taking interest in Bitcoin. After Coronavirus, the central banks started printing more and more cash, which has caused enough inflation in traditional markets. Like gold, bitcoin is also known as a good hedge in tough economic times. So, it is taking place the seat of gold gradually. Now, investors are buying the top digital asset for the long term rather than a short time.

Many big institutions have also recognized it as a potential financial asset. Even JPMorgan showed some interest in cryptocurrency and hired a new global head for digital assets. Giant payments companies, such as Mastercard and Visa, had also recognized the potential of digital assets. Goldman Sach had also hired exec for crypto assets recently.

Banks’ Plans for CBDC

According to a report published by the Bank for International Settlements, nearly 35 central banks across the world have published work over digital currency and nine banks have introduced pilot projects for central bank digital currency (CBDC). Chinese’s central bank is ahead of all which has completed all work over digital yuan. But the final date of launch has not yet been announced by the People Bank of China.

Regulators are Active

Over recent years, there has been a regulatory uncertainty around digital assets. Since the start of 2020, regulators have taken crypto regulations seriously. For instance, the US Office of the Comptroller of the Currency has recently allowed banks to offer crypto services such as custody facilities.

The European Commission (EC) has also proposed a comprehensive regulatory charter. EC said it must be ready to the launch digital euro as the world is shifting to a digital road. The US regulators are targeting unregulated crypto exchanges as BitMEX is the latest victim of it.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

New Amendment Law: Crypto Companies will Share Information of Transfers Above $250

The United States is introducing new financial laws which are also applicable to digital currencies. To curb money laundering, the US regulators have proposed an amendment in the Bank Secrecy Act, which make it a requirement to collect details about transactions, which are above $250. The US regulators also include digital currencies in the upcoming […]

Grayscale Adds $300 Million in a Day and $1 Billion in a Week

Due to the increasing demand for hedge investment assets, the companies and institutional actors have increased their Bitcoin holdings. In the latest update, fund manager Grayscale notes it is holding $7 billion in assets under management. $7.3 Billion in AUM According to Grayscale, the fund manager has added a fresh investment of $1 billion in […]

Crypto Exchange Kraken Launches Trading Services in Japan

Cryptocurrency exchange Kraken has announced to offer trading services in Japan as part of its expansion plan in the APAC region. Spot Trading for Five Cryptocurrencies According to the official announcement, the exchange will offer spot trading for five major cryptocurrencies, including Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin. For these five digital currencies, the […]

Two Non-Profits Have Received $20,000 from Hackers

BBC’s report unveils that hackers have donated $20,000 in Bitcoin to two non-profits. Such kinds of unusual acts have made experts puzzled. Non-Profits: Children International and The Water Project Two non-profit organizations, Children International and The Water Project have received donation funds, which are known to be linked with criminal sources. According to BBC, the […]